SHAREMARKET Buyers remain on sideline

Press, 13 September 1988, Page 26

SHAREMARKET Buyers remain on sideline

Buyers deserted the New Zealand sharemarket for the third successive session yesterday, causing prices to dip again.

The Barclays industrial index lost a further 37.68 points to 1948.71, putting its retreat for three sessions at 79.10 points. The Stock Exchange’s capital inuex was also off 8.25 points to 651.16.

Turnover was higher at 9.5 million shares, but this included a large non-market parcel of 3.7 M Mainzeal Properties shares. Excluding the Mainzeal lot, it means that the market is tending to drift down rather than be dominated by selling. Rises also just shaded falls.

The market looks likely to go lower today, the Barclays share price futures contract closing on its low of 1980. However, the premium is a reasonable 32 points.

Mr Ken Stevens, the market operator for Guthrie Equities, a Christchurch sharebroker, said that the New Zealand market had taken the backwash of a drop in share prices in Australia.

New Zealand companies listed in Australia were down across the Tasman, and found no buying sup-

port at home either. The Nikkei index was showing little movement on the Tokyo market, earlier in the day and all eyes would be on what happened on Wall Street overnight, he said. Although possible rises in interest rates overseas, particularly in the United States, has been a bearish factor offshore, at home rates were largely steady on Friday’s figures. Among issues to be hardest hit was Goodman Fielder Wattle, down 14c to its low of the day of 286. The factor here may be the yawning gap between the recently falling Ranks Hovis McDougall price to 357 c on Friday, compared with GFW’s offer of 465 c for the 70% it did not own. The retreating Ranks price may mean that GFW could take a capital loss of its 30% stake if it sells. Sellers also appeared to ignore Fletcher Challenge’s annual profit announcement tomorrow, which some pundits are picking will be a record of more than SSOOM. The 1987 profit was a record $355M. The issue lost 12c to 476, 1c above its low for the day. Brierley also ended the day 1c above its low at 136 c for a loss of sc. News that its Australian subsidiary, Industrial Equity, may be re-

quired to bid for Woolworths might not have helped the issue. Brierley’s British associate, Tozer Kemsley Millbourn, was hit 11c to 220 in spite of announcing improved earnings last week.

Feltrax showed little reaction to Equiticorp International considering selling its 80% stake to reduce its debt. Feltrax lost 4c to 250 and Equiticorp 1c to 47. ANZ Banking Group followed its trend across the Tasman, ending 8c down to 622. The Bank of New Zealand was 1c easier.

The non-market sale of Mainzeal shares crossed at 100 c, a 13c premium to the market price. The issue led both the most actives and highest value lists. There was no indication of the buyer or seller of the Mainzeal shares.

Among second-line issues, Kearns Corporation stood out on a 30c loss. The Christchurch-based finance group last week told shareholders of the approved doubling the companies capital, including a proposed one-for-four cash issue. Ernest Adams, which proposes paying an early interim dividend to beat the October 1 tax changes, gained 8c to 180 c, and Firestone jumped 15c to 250. Holdcorp was lc firmer on a proposed bonus issue.